Tesla has 100 days to build a 129 MWh storage plant in South Australia

on July 11, 2017

energy storage utility diveBack in March, Musk tweeted that he could solve South Australia’s power crisis in 100 days. Roughly four months later, he is getting his chance.

The 129 MWh project Tesla is building at Neoen’s wind farm is contracted to come online by Dec. 1.

South Australia earlier this year experienced rolling blackouts that attracted the interest of developers eager to demonstrate the capabilities of energy storage.

Tesla’s proposed storage facility will be used to reinforce South Australia’s grid and improve resiliency. The batteries will be charged by the wind farm and will discharge into the grid during times of peak and high demand. The batteries will also serve to smooth the integration of variable wind energy into the network and to provide backup power in the event of outages.

When completed, the 129 MWh facility would be the largest lithium-ion battery facility in operation, at least for a time. The title is currently held by San Diego Gas & Electric’s 120 MWh Escondido storage facility, though there are larger non-lithium batteries in operation, such as the Kyushu Electric Power Co​300 MWh sodium-sulfur battery facility.

All those batteries could soon be eclipsed by other planned facilities down under, however. Brisbane renewable energy firm Lyon group announced plans for a 100 MW, 400 MWh battery storage facility in March, slated for siting alongside a 330 MW solar farm. And Queensland’s SolarQ is planning a lithium storage facility of up to 4,000 MWh to be paired with a 350 MW solar facility.

Those batteries aren’t planned to be installed before the Tesla facility, however, giving the company the title of largest lithium-ion facility once again. Before SDG&E’s Escondido project came online, Tesla briefly held the distinction for its 80 MWh facility for Southern California Edison.

“Battery storage is the future of our national energy market, and the eyes of the world will be following our leadership in this space,” Weatherill said in a statement.

Click Here to Read Full Article

read more
Utility DiveTesla has 100 days to build a 129 MWh storage plant in South Australia

Massachusetts Sets Energy Storage Target

on July 11, 2017

The-National-ReviewOn June 30, 2017, the Massachusetts Department of Energy Resources (DOER) announced that Massachusetts would adopt an aspirational 200 megawatt-hour (MWh) energy storage target to be achieved by January 1, 2020. The target is the second largest in the nation, although it is far lower than California’s 1.3 gigawatt storage mandate. Still, Massachusetts’ storage target will make the commonwealth a leader in the burgeoning energy storage field.

The process of setting storage targets began last summer, when Massachusetts enacted a law directing DOER to determine whether to set targets for electric companies to procure energy storage systems by January 1, 2020. In September 2016, Massachusetts released a report called the “State of Charge,” which recommended the installation of 600 megawatts (MW) of energy storage by 2025. The report predicted that 600 MW of storage could capture $800 million in system benefits to Massachusetts ratepayers. The energy storage industry praised the 600 MW level as a good starting point.

DOER’s “aspirational” 200 MWh by 2020 target falls short of the “State of Charge” recommendation, but leaves the door open to achieving 600 MW by 2025. DOER’s letter announcing the target noted that “[s]torage procured under this target will serve as a crucial demonstration phase” for Massachusetts to gain knowledge and experience with storage. “Based on lessons learned from this initial target,” the letter continues, “DOER may determine whether to set additional procurement targets beyond January 1, 2020.”

Beyond DOER’s storage target, Massachusetts has a broader Energy Storage Initiative, which includes a $10 million grant program aimed at piloting energy storage use cases and business models in order to increase commercialization and deployment of storage technologies. DOER also announced that it will examine the benefits of amending the Alternative Portfolio Standards, an incentive program for installing alternative energy systems, to expand the eligibility of energy storage technologies able to participate. While Massachusetts’ storage targets are not as lofty as some in the industry were hoping, the commonwealth is demonstrating a clear commitment to developing its energy storage industry beyond the few megawatts currently installed.

Click Here to Read Full Article
read more
The National ReviewMassachusetts Sets Energy Storage Target

Understanding the energy storage world leaders, anticipating the next big markets

on July 10, 2017

Energy Storage NewsWhile the global energy storage industry has continued its pace of rapid growth during the past year, well-established markets remain highly concentrated in specific regions of the world. In fact, Navigant Research expects the top five country markets to account for 56% of the new energy storage capacity forecast to be built in 2017. Over the coming years, this dynamic will change, as the industry is already seeing significant geographic diversification.

Navigant Research’s latest Country Forecasts for Energy Storage reports explore the growth trends for energy storage at the utility-scale and distributed levels in 26 countries around the world. This article highlights the leading countries for energy storage identified in those two reports, explores the factors shaping these markets, and explains how these and other factors can be used to determine where and when new markets will emerge.

Global and country-level dynamics

The economics of new energy storage projects are improving in countries globally, driven by:

  • Falling hardware costs
  • Increasing electricity market deregulation to increase competition
  • Increasing investor confidence in energy storage technology
  • Improving storage system value due to advanced software capabilities

Although there are many overarching drivers in this industry, the specific dynamics of individual markets vary considerably. There will be a varying mix of storage technologies and applications in different countries, depending on local conditions. One key factor differentiating markets is the attractiveness of storage in different market segments, specifically the split between front-of-the-meter (FTM) and behind-the-meter (BTM) systems.

A major focus for Navigant Research is understanding the specific dynamics of energy storage markets to forecast when and where significant growth will occur. Factors such as electricity market structure, retail rates, and renewable energy deployments (among others), have resulted in energy storage markets taking shape in unique ways in different countries. For example, some countries have seen major growth in utility-scale FTM storage deployments, but little to no activity on the BTM side. Alternatively, other countries and regions have seen growing popularity of customer-sited BTM storage systems, but much less demand for FTM projects. 

Click Here to Read Full Article

read more
Energy Storage NewsUnderstanding the energy storage world leaders, anticipating the next big markets

Project Financing Grows for Commercial Energy Storage, Lags for Residential

on July 10, 2017

energy storage greentech mediaThe energy storage industry needs better financing to break out of its early stages. So far, commercial project financing is becoming more widely available, but residential financing has barely gotten started.

The high upfront cost of storage makes it hard for behind-the-meter customers to purchase out of pocket, and they can’t call on the kind of capital available to utilities or large power producers. For financiers, meanwhile, energy storage poses several risks: It’s a relatively new technology with emerging business models and revenue streams, both of which are subject to the influence of shifting tariff structures.

“If the energy storage market is going to grow beyond the early adopters, there’s going to have to be more widely available, low-cost financing,” said Brett Simon, a behind-the-meter storage analyst at GTM Research, who recently published a report on storage financing.

Here are the key indicators of where storage financing stands today.

Commercial financing is growing, with a clear pathway to success

The pool of project financing is swelling. It jumped from almost nothing in 2015 to $796 million in 2016, and the storage financing in 2017 hit 51 percent of that amount by mid-May. That money is going almost exclusively to commercial projects, although a growing cohort of lenders now at least cover residential storage.

The minimum internal rate of return needed to attract financiers ranges from the high single digits to the low 20 percent mark, according to Simon’s latest research on the topic. The bulk of financiers are looking at the low to mid-teens.

Contracted revenue streams can cut the cost of capital for a project, the study notes. Capacity payments from utilities are an early form of this, and many utilities are examining new ways for distributed storage to provide grid services. Such an arrangement provides the lender with greater certainty that the storage installation will bring in revenue.

In all the cases where financiers accepted an internal rate of return below 10 percent, the project had a contracted revenue stream.

The majority of non-residential projects installed so far also feature demand-charge management as a key component.

Click Here to Read Full Article

read more
GreenTech MediaProject Financing Grows for Commercial Energy Storage, Lags for Residential

Groundbreaking new energy storage system mounts to existing poles

on July 7, 2017

inhabitatGrid reliability is a growing concern as the world transitions to renewable energy and existing infrastructure ages. To address these challenges, Toronto Hydro is testing a grid-scale energy storage system that can be attached to poles already present around the city. The system has been in place since August of last year, and it’s already displaying positive results.

Toronto Hydro is running a pilot program with the pole-mounted energy storage system in the city’s North York neighborhood. Drawing on eCAMION battery technology, the energy storage system was first developed at Ryerson University. According to the press release, the system completely lacks a footprint, because it can be attached to existing infrastructure

The energy storage system can be mounted 16 feet up on power poles, and can store as much energy as around 2,100 smartphone batteries could. During off-peak hours, it stores power and then releases it when there’s a demand. Energy storage technology could lengthen the lifespan of some of Toronto Hydro’s equipment, and offer reliability as a backup power source in case of an outage.

Bala Venkatesh, Academic Director at Ryerson University’s Center for Urban Energy, described this energy storage unit as the first of its kind in the world, saying in a statement, “This project showcases how the use of energy storage and smart grid technologies can enhance distribution system performance and reduce asset upgrade costs.”

The team monitoring the pole-mounted system is scrutinizing how it reacts to real-time data. So far they’ve found the system can indeed lower the burden on local transformers. Should the pilot project continue to go well, Toronto Hydro is considering implementing the technology on new installations on the more than 175,000 power poles in Toronto.

 

Click Here to Read Full Article

read more
InhabitatGroundbreaking new energy storage system mounts to existing poles

GE Is Quietly Building Energy-Storage Innovations

on July 6, 2017

The-PantagraphWhen most people think of energy storage, they probably think of Elon Musk and Tesla‘s (NASDAQ: TSLA) splashy moves with the Powerwall and Powerpack. PanasonicSamsung, and LG Chem are also eyeing the energy-storage market in one form or another, building out capacity that could supply an expected boom in lithium ion battery demand. 

Lost in the shuffle is General Electric (NYSE: GE), a key supplier to the electricity market worldwide. The company builds everything from fossil-fuel power plants to wind turbines and the components that make up the transmission and distribution grid. And it may have some energy-storage solutions other companies just can’t match. 

Potentially the most meaningful energy-storage product GE released recently is a hybrid battery storage and gas turbine power plant. The product is designed to replace spinning reserves that are required to keep the grid functional as volatile wind and solar assets fluctuate in their output throughout the day. But instead of burning just natural gas to keep those reserves spinning, there’s a battery acting as a buffer. 

When the storage system is called upon, there’s a 10 MW lithium-ion battery that will ramp up power quickly, with up to 50 MW of natural gas generation. GE estimates the system will result in fuel savings, reduce maintenance cost, and lessen greenhouse-gas emissions that are burned keeping spinning reserves available. 

In this case, the battery isn’t a massive energy-storage system the grid can call upon, such as what Tesla or AES Corporation are building. It’s a buffer between the variable resources on the grid and the fossil-fuel plants that need to back up those resources. 

Energy storage for renewables

In the future, it would make sense that either battery energy storage or a hybrid power plant will accompany major renewable-energy power plants. If GE paired a battery with its wind turbines or a hybrid power plant, it could add tremendous value to the grid, reducing the variability that grid operators have to deal with. Eventually, it could even pair these products with inverters it already sells for the booming solar market. 

few weeks ago, when I suggested that GE should buy First Solar (NASDAQ: FSLR), I mentioned that energy storage is the kind of product it could easily fold into its offering to make the solar product more valuable. And with GE trying to grow its inverter business, it would make a lot of sense to vertically integrate its offering with solar and energy storage. 

Click Here to Read Full Article

read more
The PantagraphGE Is Quietly Building Energy-Storage Innovations

Designing Storage for Homes That Don’t Have Solar Yet

on July 5, 2017

energy storage greentech mediaMuch has been made of the interoperability problem with home energy storage systems. Existing solar customers need battery systems that can connect easily with their legacy equipment. AC-coupled storage has proliferated to solve that problem.

When Maine-based Pika Energy got to work designing power electronics for a new residential storage platform, the team decided to go in a different direction.

“AC coupling is attractive because you can retrofit it. However, actually getting the new battery inverter to talk to the legacy PV inverter is not a simple thing to do,” said company President and co-founder Ben Polito. “Do you want to send your best technician to figure out how to interact with that 2011 inverter in an optimal way? It becomes more like a science project than a scalable solution.”

The desire for easily scalable deployment and reduced installation time led Polito to a plug-and-play platform approach. That product is now available for order as the Harbor Smart Battery, a collaboration with Panasonic Eco Solutions North America.

The system will ship later this year in 10- and 15-kilowatt-hour configurations, offering up to 6.7 kilowatts of instantaneous power. It integrates Panasonic lithium-ion battery modules and is designed for easy pairing with solar generation using the same inverter for both. It can handle islanded backup as well as solar self-supply.

The different elements link up through Pika’s REbus nanogrid platform, which Polito describes as “USB for clean power.” It provides a ready-made hookup so that different home energy assets can all communicate with each other, coordinating system performance based on market price signals. 

The Harbor system has built-in electronics to connect the Panasonic batteries into the REbus system. That makes it easy to slide the battery modules into place with minimal electrical work. The individual components weigh less than 75 pounds, so they don’t require large teams to carry.

“The whole 15 kilowatt-hour battery solution can be installed by one guy or gal in less than an hour,” said Polito, whose company recently raised $2 million.

The design concept reflects a theory of what the residential storage market will look like in the future. 

Click Here to Read Full Article

read more
GreenTech MediaDesigning Storage for Homes That Don’t Have Solar Yet

ENERGY Should Energy Storage Have a Place in the U.S. Infrastructure Budget?

on July 5, 2017

The White House recently announced that $200 billion in tax cuts will be allocated through federal funds to incentive private companies to re-build US infrastructure. The expectation is that the resulting improvements will be ultimately valued at $1-trillion. While this is hardly a plan that states and cities can currently run with, a 50-slide document released in January offers at least a small amount of insight as to where these funds may go.

Fifty infrastructure projects that have potential to restore value to the economy are listed in the document. For each project, the document outlines estimated costs, potential number of jobs created, sources of funding (federal, public, and private), and a summary of a projects’ long-term value. Most projects in the document are related to the construction and maintenance of waterways and dams, mass public transit, highways, and pipelines. 50% are privately funded.

Out of the 50, seven projects focus on electricity, and five focus on “clean power”. Two projects led by private company, Anscuntz are covered in the report, with the TransWest Express Transmission line spanning 725 miles to transport electricity from 1000 wind turbines at the Chokecherry and Sierra Madre wind farm in Wyoming. The transmission leads to distributed load centers in Las Vegas, southern California, and Arizona. Another transmission line project for transmitting renewable energy in mid and eastern southern states is listed in the report, along with two more projects aimed at restoring hydropower plants, one of which would supply power to the NYC metro (slide 21).

But only one project in the document addresses grid modernization and implementation of storage system for renewable energy. This is the grid modernization project in southern California, which was initiated to cut down on the use of fossil-fuel backup generators during grid failures, and expedited after a natural oil shortage in Aliso Canyon. 

The Energy Storage Association notes that there will be a higher demand for energy storage as buildings, HVAC, and transportation add more than 3,500 TWh in grid loading over the next 8 years. Aging grids will require upgrades, and adding automatic controls can help to meet the higher electricity demands of a growing population. Storage can also help mitigate grid disruptions that are likely to become more frequent and severe. The ESA predicts that 35 GW of energy storage will be installed to supply electricity the grid by 2025.

The U.S. needs storage to reap the benefits of its existing and future renewable energy infrastructure. In 2016 alone, more than 7.8 GW of U.S. wind energy was installed, and now exceeds 72 GW installed capacity. 15 GW solar energy infrastructure was installed in the U.S. in 2016. By 2022, corporate-procured renewables are expected to reach 60 GW, and businesses and states will continue to invest in renewable energy infrastructure.

Click Here to Read Full Article

read more
Machine DesignENERGY Should Energy Storage Have a Place in the U.S. Infrastructure Budget?

Aggreko buys energy storage company Younicos

on July 5, 2017

Power provider Aggreko is jumping big into the energy storage sector with its acquisition of Younicos announced this weekend.

Aggreko is buying Younicos for $45 million in cash, according to reports. The deal will combine Aggreko’s global scale in temporary power services with Younicos’ energy storage solutions and research capabilities, executives said.

“As energy markets continue to decarbonize, decentralize and become more digital, the integration and control of multiple energy sources, including thermal and renewable, will be essential to ensure the provision of reliable power,” Chris Weston, CEO of Aggreko, said in a statement. “As a pioneer of smart energy solutions based on battery storage, Younicos is at the forefront of this trend.”

German and U.S.-based Younicos has more than 200 MW of installed storage systems. The company had revenues of $7.9 million and an operating loss of $17 million in 2016.

Nonetheless, the companies stated that the combination will open new markets and deliver cheaper, cleaner energy to customers.

“We are delighted to be joining with a market-leading power provider in Aggreko,” said Younicos CEO Stephen Prince, who will now report to Weston. “Batteries are an economically attractive and reliable asset which will play an increasing role as we transition from today’s energy market to the energy market of the future. Integration and management of multiple distributed energy resources will be necessary to optimize energy systems and deliver customers with greater stability at a lower economic and environment cost.”

The deal is $45.4 million in cash and, when completed, will include a $7.9 million net debt/cash adjustment payment. Aggreko expects the acquisition to be a net loss in the short term and dilutive to earnings.

Aggreko, founded in 1962, provides mobile power, heating and cooling services globally. The company has more than 7,300 employees in 100 countries and annual revenue of $2.6 billion.

Click Here to Read Full Article

read more
Electric Light and PowerAggreko buys energy storage company Younicos

The Long-Awaited Massachusetts Energy Storage Target Has Arrived

on July 4, 2017

energy storage greentech mediaBasketball fans have March Madness, political junkies get a big election every four years, and the Oscars roll around every February. For energy storage buffs, moments of collective anticipation are harder to come by.

Friday is as good as it gets, thanks to the long-awaited release of Massachusetts’ energy storage procurement target. Following a law passed last summer, the Department of Energy Resources took until the close of 2016 to decide a target was a good idea, and then had until July to name a number.

And the number is: 200 megawatt-hours by 2020.

That target comes with additional sweeteners like $10 million in additional funding for demonstration projects and a pledge to investigate eligibility for storage systems under the state Alternative Portfolio Standard. And, depending on how this first round goes, the DOER may add another target after 2020.

“Massachusetts’ biggest storage needs are tied to reducing peak loads, and through a megawatt-hour target, the DOER is setting a clever path for utilities to have the option of cutting peak load for longer durations, or to design plans to procure more short duration storage,” said Ravi Manghani, energy storage director at Greentech Media.

This mandate comes in lower than California’s 1.3 gigawatts, as is to be expected, but much higher than Oregon’s curiously unambitious target of 5 megawatt-hours per utility.

Achieving this will mark a big step up from the few megawatts installed in the state today, with nothing at the commercial scale and just 180 kilowatts of residential, according to GTM Research.

At first glance, the target looks small compared to the 600 megawatts suggested by the State of Charge report released by Massachusetts in September. That analysis found that 1,766 megawatts would optimize system benefits for ratepayers, but concluded that 600 by 2025 was more feasible and would save the state’s ratepayers $800 million in system costs. That level of storage would equate to roughly 5 percent of the state’s peak load.

However, the timeline is different: Achieving 200 megawatt-hours by 2020 could well set the state on a path to hit 600 megawatts by 2025. (Note the difference in units, as well.)

The storage industry rallied behind the 600-megawatt level as a good starting point after the report came out last year.

Click Here to Read Full Article

read more
GreenTech MediaThe Long-Awaited Massachusetts Energy Storage Target Has Arrived